Small Capital Trading Cryptocurrency: 10 Life-Saving Tips!
(Especially be wary of Tip 8, 90% of people fall here)
1. Small capital should 'wait' not 'go all in'
With a capital of 200,000, capturing 2-3 mainstream coins with a 30%+ increase is enough; going all in during a bull market will lead to losses, staying out is safer.
2. First practice 'not losing' then learn 'earning'
Do not act blindly in the real market —— if your capital loses 50%, you need to earn 100% to break even; do not overestimate yourself.
3. Good news often becomes bad news
If a significant piece of good news is announced and the coin price has already surged, a high opening the next day is a selling point; it's a common practice for the handlers to offload using good news.
4. Reduce positions before holidays
Data from the past 5 years: the probability of a decline in the week before a holiday exceeds 70%; do not gamble on the market, reducing positions or staying out is safer.
5. Always keep some bullets for medium to long-term
Buy on the rise in batches, sell on the decline in batches; cash flow is the moat against declines, do not go all in at once.
6. Short-term trading only looks at 'momentum'
A sudden increase in trading volume + breaking through resistance levels means you should act decisively; when the market is sideways with low volume, it’s better to miss out than to force a position.
7. Sharp declines can be categorized into fast drops and slow drops
A sudden drop with high volume is often the last hit (a rebound is imminent), while a slow decline with no buyers may continue to fall.
8. Cut losses quickly, don’t wait to break even
"Just wait a bit more to get out" is a deadly illusion! Not being decisive in cutting losses leads to greater capital losses; survival is more important than breaking even.
9. For short-term trading, watch the 15-minute KDJ
Buy on golden crosses, sell on dead crosses, filter out false signals with trading volume; this is suitable for newcomers who don’t have time to monitor the market.
10. Less is more
3-5 effective strategies are enough for stable profits; do not blindly trust various indicators; mastering a few is more important than spreading too thin.
Core reminder: 200K turning into 1 million in 3 months relies on position management, not on skills! The harshest reality in the crypto circle is that every missed opportunity for optimization translates into real monetary losses!
